Deutsche Bank’s Rreef Infrastructure platform is in a tailspin following news that its most recent fund has been suspended, with investors weighing whether to demand their capital be returned, according to three people familiar with the matter.

Deutsche Bank’s Rreef Infrastructure platform is in a tailspin

The decision by John McCarthy, global head of Rreef Infrastructure, to depart the business last week has triggered a key-man clause – where the ability to invest capital is suspended until an agreement is reached with investors, according to two people familiar with the matter. Various people said that investors were considering withholding consent for the fund to be re-opened and instead asking for capital to be returned.

One senior infrastructure fund manager said: “John was the face of that business and did a lot of [investor relations] work. Without him it’s difficult to see the business continuing.”

The people added that McCarthy had hoped to lead a spin-out of the business but was refused by the bank, which considers the team core to its efforts to double profits and grow assets under management to €1 trillion by 2015 at its combined asset management and wealth management business.

Rreef was in the process of raising its second fund, which had targeted €2bn – matching the sum raised by its 2007 predecessor – and held a first close of about €600m in April 2011, one investor said.

Fundraising slowed as Deutsche considered a sale of its asset management division, only re-starting late last year after negotiations with asset manager Guggenheim Partners collapsed. The bank has appointed Hamish Mackenzie and Nadir Maruf to co-lead the division in McCarthy’s place. It hopes to lift the suspension by the summer and re-commence fundraising.